Correlation Between Dongguan Aohai and Kingsignal Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongguan Aohai Technology and Kingsignal Technology Co, you can compare the effects of market volatilities on Dongguan Aohai and Kingsignal Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dongguan Aohai with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Kingsignal Technology.
Diversification Opportunities for Dongguan Aohai and Kingsignal Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongguan and Kingsignal is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Dongguan Aohai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dongguan Aohai Technology are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Dongguan Aohai i.e., Dongguan Aohai and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Kingsignal Technology
Assuming the 90 days trading horizon Dongguan Aohai is expected to generate 1.53 times less return on investment than Kingsignal Technology. But when comparing it to its historical volatility, Dongguan Aohai Technology is 1.39 times less risky than Kingsignal Technology. It trades about 0.03 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 912.00 in Kingsignal Technology Co on September 25, 2024 and sell it today you would earn a total of 85.00 from holding Kingsignal Technology Co or generate 9.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dongguan Aohai Technology vs. Kingsignal Technology Co
Performance |
Timeline |
Dongguan Aohai Technology |
Kingsignal Technology |
Dongguan Aohai and Kingsignal Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dongguan Aohai and Kingsignal Technology
The main advantage of trading using opposite Dongguan Aohai and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai position performs unexpectedly, Kingsignal Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.Dongguan Aohai vs. Sportsoul Co Ltd | Dongguan Aohai vs. Tongyu Communication | Dongguan Aohai vs. Shuhua Sports Co | Dongguan Aohai vs. Xiangyang Automobile Bearing |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Commodity Directory Find actively traded commodities issued by global exchanges |